If the Market Price in a Price-Taking Industry Was Currently

Multiple Choice

If the market price in a price-taking industry was currently above the average total cost of production for firms in the industry,

A) firms in the industry would earn short-run economic profits that would be offset by long-run economic losses.
B) new firms would enter the industry, which would drive price down to the average total cost of production in the long run.
C) firms in the industry would earn positive economic profits in the long run.
D) most firms in the industry would shut down in the long run.